Global Tax Overhaul to Include Binding Dispute Resolution: OECD

A top OECD official said the agency will come up with a new dispute resolution mechanism to sidestep opposition to mandatory binding arbitration as the global tax overhaul moves forward.

The Organization for Economic Cooperation and Development is seeking global agreement on plans to reform how multinationals pay tax worldwide. As part of that plan, the organization wants to introduce a binding dispute resolution mechanism, but that’s shaping up to be a very contentious issue. Companies say it’s needed, while developing countries say they won’t agree to it.

“We are working toward something other than mandatory binding arbitration, that would ...